Bitcoin rallied on Thursday after the latest U.S. employment data pointed to a slower pace of job creation, boosting expectations that the Federal Reserve may be able to keep interest rates unchanged later this year.

The world’s largest cryptocurrency briefly traded above $62,000 following the release of the June employment report, recovering part of the steep losses recorded during June as investors reassessed the outlook for U.S. monetary policy.

Weak Jobs Data Supports Risk Assets

The U.S. Labor Department reported that employers added 57,000 jobs in June, substantially below the 113,000 positions economists had expected.

The softer labor market data suggests the economy may be cooling without entering a severe slowdown, easing pressure on Federal Reserve policymakers who have been battling elevated inflation.

Bitcoin and other digital assets have remained highly sensitive to interest rate expectations because higher borrowing costs typically reduce investor appetite for speculative assets.

Rate Hike Expectations Moderate

Federal Reserve Chairman Kevin Warsh reiterated earlier this week that policymakers remain committed to returning inflation to the central bank’s 2% target, while avoiding detailed guidance on future interest rate decisions.

Warsh noted that market-based measures of inflation expectations have moderated in recent weeks, providing policymakers with encouraging signs that inflation pressures may be easing.

Following Thursday’s employment report, investors increasingly viewed the weaker labor market as reducing the likelihood that additional monetary tightening will be required during the remainder of 2026.

Brian Jacobsen, chief economist and strategist at Annex Wealth Management, said the labor market appears strong enough to avoid recession while not overheating to the point of forcing the Federal Reserve into further interest rate increases.

Bitcoin Continues to Face Broader Challenges

Despite Thursday’s rebound, Bitcoin remains under pressure after suffering its weakest monthly performance in four years during June.

The cryptocurrency declined approximately 20% last month as investors became increasingly concerned that persistent inflation could prompt additional Federal Reserve tightening.

Market sentiment has also been weighed down by continued outflows from spot Bitcoin exchange-traded funds and growing investor preference for artificial intelligence-related equities, which have attracted significant capital throughout the year.

As a result, Bitcoin has fallen roughly 29% since the start of 2026 and remains approximately 50% below the all-time high reached last October.

Outlook

While weaker economic data has temporarily improved sentiment across cryptocurrency markets, Bitcoin’s longer-term direction will likely remain closely tied to Federal Reserve policy, institutional investment flows, and broader investor appetite for risk assets. Future inflation reports and labor market data are expected to remain key catalysts for digital asset prices in the months ahead.